Are the EV Tariffs Working? Western Carmakers Shifted Production to EU, but Chinese Brands Continue to Grow — Analysis
AI-summarised brief · reviewed before publication
Transport & Environment’s latest analysis shows that the EU’s electric‑vehicle tariffs have cut the share of Chinese‑made EVs sold by Western brands from a peak of 22 % in 2024 to 17 % in Q1 2026, as Tesla, BMW and Volvo shifted assembly to Europe. Meanwhile, imports of Chinese‑brand EVs kept rising, now representing over half of all Chinese BEV shipments to the bloc. Differing tariff rates produced mixed results: SAIC’s BEV imports fell by roughly 50 % after a 35 % duty, while BYD’s doubled despite a 17 % levy. Chinese manufacturers are also onshoring production and expanding into plug‑in hybrids, boosting their PHEV share from 3 % to 13 % since 2024. Battery imports from China, which face minimal duties, surged seven‑fold between 2020 and 2025, prompting calls for a 20 % tariff that would raise EU‑built BEV prices by only 2.8 %. The analysis warns that weaker EU CO₂ targets could lift Chinese EV market share to 30 % by 2035, underscoring the need for combined incentives and protection to secure a domestic battery supply chain.
💡 Why It Matters
- · Without stronger safeguards, Europe risks losing its nascent EV and battery manufacturing base to a flood of cheaper Chinese imports, undermining the bloc’s climate and industrial policy goals.